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Commentary: David Beckworth and Patrick Horan - Return to the gold standard? No


Commentary: David Beckworth and Patrick Horan - Return to the gold standard? No
David Beckworth and Patrick Horan
July 30, 2021
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Fifty years ago next month, with inflation rising and growing trade deficits, President Richard Nixon suspended the conversion of the U.S. dollar into gold. This decision effectively ended the Bretton Woods system the final attempt at an international gold standard and ushered in a new era of floating exchange rates between major currencies, rather than rates fixed by policymakers.
The end of gold-backed money and fixed exchange rates has been controversial, but it remains the right decision.
Former congressman and presidential candidate Ron Paul decided to first enter politics because of his disappointment with Nixon’s decision. Some commentators have argued that floating exchange rates are a major source of instability and seek a return to some sort of Bretton Woods-style arrangement. Many argue that as ....

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Federal reserve now projects rate increases in 2023


Federal reserve now projects rate increases in 2023
The Federal Reserve left rates unchanged and said it would continue buying bonds as the economy continues to recover.
The Federal Reserve will have to weigh signs of economic resurgence against the reality that millions of workers have yet to return to the labor market.
Stefani Reynolds/The New York Times
By Jeanna Smialek, New York Times Service
June 16, 2021 | 7:21 PM
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Federal Reserve officials signaled Wednesday that they expected to raise interest rates from rock bottom sooner than they had previously forecast and that they were taking baby steps toward reducing their vast bond purchases tweaks that, together, demonstrated their increasing confidence that the economy would rebound robustly from the pandemic. ....

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